Question

Jefferson County’s General Fund began the year 2020 with the following account balances:

 

During 2020, Jefferson experienced the following transactions:

1. The budget was passed by the County Commission, providing estimated revenues of $286,000 and appropriations of $233,000 and estimated other financing uses of $40,000.

2. Encumbrances totaling $4,800 outstanding at December 31, 2019, were re-established.

3. The Deferred Inflows—Property Taxes at December 31, 2019, is recognized as revenue in the current period.

4. Property taxes in the amount of $288,000 were levied by the County. It is estimated 0.5 percent (1/2 of 1 percent) will be uncollectible.

5. Property tax collections totaled $263,400. Accounts totaling $1,850 were written off as uncollectible.

6. Encumbrances were issued for supplies in the amount of $37,100.

7. Supplies in the amount of $40,500 were received. Jefferson County records supplies as an asset when acquired. The related encumbrances for these items totaled $41,000 and included the $4,800 encumbered last year. The County paid $38,100 on accounts payable during the year.

8. The County contracted to have alarm systems (capital assets) installed in the administration building at a cost of $42,900. The systems were installed and the amount was paid.

9. Paid wages totaling $135,900, including the amount payable at the end of 2019. (These were for general government operations.)

10. Paid other general government operating items of $7,600.

11. The General Fund transferred $39,800 to the debt service fund in anticipation of bond interest and principal payments. Additional Information

12. Wages earned but unpaid at the end of the year amounted to $890.

13. Supplies of $350 were on hand at the end of the year. (Supplies are used for general government operations.)

14. A review of property taxes receivable indicates that $23,000 of the outstanding balances would likely be collected more than 60 days after year-end and should be deferred.

 

Required:
Use the Excel template provided on the textbook website to complete the following requirements. A separate tab is provided in Excel for the following
items:

a. Prepare journal entries to record the information described in items 1 to 14. Classify expenditures in the General Fund as either General Government or Capital Outlay. Make entries directly to these and the individual revenue accounts; do not use subsidiary ledgers.

b. Post these entries to T-accounts.

c. Prepare closing journal entries; post to the T-account provided. Classify fund balances assuming there are no restricted or committed net resources and the only assigned net resources are the outstanding encumbrances.

d. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund for the year ending 2020. Use Excel formulas to calculate the cells shaded in blue.

e. Prepare a Balance Sheet for the General Fund as of December 31, 2020.

Journal Entries

	Jefferson County
	General Fund Journal Entries
	December 31, 2020
Item #	Account Title	Debits	Credits

 

ALLOWANCE FOR

CASH

TAXES RECEIVABLE

UNCOLLECTIBLE TAXES

SUPPLIES

bb

146,348

bb

32,220

1,900

bb

bb

1,660

32,220

1,900

1,660

146,348

DEFERRED INFLOWS -

ACCOUNTS PAYABLE

PROPERTY TAXES

WAGES PAYABLE

FUND BALANCE

-

bb

21,000

bb

570

bb

156,758

bb

-

21,000

570

156,758

GENERAL GOVERNMENT

CAPITAL

OTHER FINANCING USES

EXPENDITURES

EXPENDITURES

PROPERTY TAX REVENUE

TRANSFERS OUT

Answer 1

Journal Entries

	General Fund Journal Entries
	December 31, 2020
Item #	Account Title	Debits	Credits
1	Estimated Revenues	$ 286,500
	Appropriations		$ 233,000
	Estimated other financing uses		$ 40,000
	Budgetary fund balance		$ 13,500
2	Encumbrances	$ 4,800
	Budgetary fund balance reserve for encumberances		$ 4,800
3	DEFERRED INFLOWS -PROPERTY TAXES	$ 21,000
	Property tax revenue		$ 21,000
4	Taxes receivable	$ 288,000
	Allowance for uncollectible taxes		$ 1,440
	Property tax revenue		$ 286,560
5	Cash	$ 263,400
	Taxes receivable		$ 263,400
	Allowance for uncollectible taxes	$ 1,850
	Taxes receivable		$ 1,850
6	Encumbrances	$ 37,100
	Budgetary Fund Balance - Reserve for encumbrances		$ 37,100
7	Supplies	$ 40,500
	Accounts payable		$ 40,500
	Budgetary Fund Balance - Reserve for encumbrances	$ 41,000
	Encumbrances		$ 41,000
	Accounts payable	$ 38,100
	Cash		$ 38,100
8	Encumbrances	$ 42,900
	Budgetary Fund Balance - Reserve for encumbrances		$ 42,900
	Capital Expenditures	$ 42,900
	Cash		$ 42,900
	Budgetary Fund Balance - Reserve for encumbrances	$ 46,600
	Encumbrances		$ 46,600
9	General government expenditures	$ 135,330
	Wages Payable	$ 570
	Cash		$ 135,900
10	General government expenditures	$ 7,600
	Cash		$ 7,600
11	Other financing uses - transfer out	$ 39,800
	Cash		$ 39,800
12	General government expenditures	$ 8,900
	Wages Payable		$ 8,900
13	General government expenditures	$ 41,810
	Supplies		$ 41,810
14	Property tax revenue	$ 23,000
	Deferred inflows property taxes revenue		$ 23,000

 

									ALLOWANCE FOR
	CASH				TAXES RECEIVABLE				UNCOLLECTIBLE TAXES				SUPPLIES
bb	146,348	38,100		bb	32,220	263,400			1,850	1,900	bb	bb	1,660	41,810
	263,400	42,900			288,000	1,850				1,440			40,500
		135,900
		7,600
		39,800
					54,970					1,490			350
	145,448
					DEFERRED INFLOWS -
	ACCOUNTS PAYABLE				PROPERTY TAXES				WAGES PAYABLE				FUND BALANCE
	38,100	-	bb

38,100